People store and assimilate information. Whenever we pass a bad driver on the road, we turn and look. We may not memorize the details, but we absorbe the information and add it to our model. In this case,a set of stereo types, which is part of our model of the world. Over time we recognize the most important aspects of our environment on a subconscious level, improving our driving ability and increasing our available range of perception.

Tuesday, May 09, 2006

Simplified Tax Policy

(No more payroll tax. Everything will be paid for out of general tax revenue.)

1. One Flat Tax Rate for income.2. Another (lower) Flat Tax Rate for investment income.3. One, and only one, deduction: A standard deduction, of the per capita GDP, for every individual.

No taxes until you make over $42,000.

Married, no taxes until $84,000.

Incentive to have a child for every additional $42,000 of income.

The only way for businesses to take advantage of the deduction is to hire more employees. Companies have incentive to hire more workers, especially for jobs with salaries $42,000 and below. There is also incentive to pay employees with families more.

For example, meet Joe. He earns $50,000 a year. Lets say the tax rate is 20% and lets keep the GDP per capita at $40,000; Joe pays 4% of his income to the IRS. He then gets a raise of $10,000; he now pays 6.7% of his income in taxes. Then he sleeps with his boss and gets a $40,000 raise, he now pays 12%. He then gets married with a housewife, now he pays 4%.